USD/JPY Breaks Above Key Resistance
The USD/JPY currency pair has been on an upward trend, reaching around 155.00 this morning. This level is significant both technically and psychologically, as it marks a recovery from a seven-month low.
The rebound can be attributed to rising US Treasury yields and oil prices, which are boosting investor confidence in the dollar. The Federal Reserve's expected rate hike on Wednesday has also contributed to the pair's upward momentum.
However, the potential for a hawkish Bank of Japan surprise is limiting the USD/JPY's upside relative to other dollar FX major pairs. The outcome of the Fed and BOJ meetings will be crucial in determining the pair's direction.
The technical outlook remains mixed ahead of the central bank meetings. A clean break above 155.00 could lead to a continuation move towards 156.00-157.00, while a sustained break above 157.00 could see the pair climb to test the larger resistance area between 158.00 and 158.60.